ok mate,do you know any body from madurai are in and round madurai ? now im using liberty reserve ,just planing to jump to bitcoins mate,just wanna know how to buy and sell bitcoins, can you guide me mate?….

join the forum at bitcointalk.org. There are a few people from Chennai and Kerala. Most of my work is around Bangalore. Maybe a quick trip to Bangalore for one of our meetups will expand your Bitcoin network. You can also convert your LR to BTC quite easily.
Another way to work this is to register on localbitcoins.com. this seems to be working very well in Bangalore with 3-4 confirmed buy/ sells.

Thank you for your informative articles.
I have just discovered bitcoin and you call me one of those who has just joined the gold rush. (though it is another matter that I have just gathered gold dust so far) But I want to be on the right side of the law.Since there is no clear guideline from RBI on bitcoin, I wonder if you could offer some suggestion
– Is it illegal to convert your bitcoins to INR either by direct exchange with another person in my locality who is willing to purchase bitcoins as far current laws in India are concerned ?
– is there another way possible to convert to bitcoins to INR legally and remit to my account in India (I am based in India) provided i am willing to declare in my tax returns ?
– do you suppose it would be good idea to ask these questions to RBI (perhaps via their website or dropping them a RTI or something) ?

When INR touches Bitcoin it moves into a grey area. Bitcoins nature has not been defined by the RBI, but it will come under Virtual Currencies, which are regulated in India.
The only legal way to procure Bitcoin are Mining and selling services for Bitcoin. Sale of goods comes under the regulation as it can generate revenue that needs to be taxed.
The good thing about cash is that it cannot be traced, therefore buying Bitcoin with INR is highly un-regulatable due to the fact that 97% of India uses cash.
I like the idea of an RTI to the RBI. Let me work on that and revert back to you.

Thanks very much for your insight. Regarding earning bitcoin, there is another way which to visit those sites offering bitcoins for free or clicking link etc. Though they offer almost nothing, I suppose they are better than nothing till one is in position to mine bitcoins or offer services. For now I think the best strategy would be keep on accumulating them and cash on then when they become legal.
And thanks for considering RTI. In case I do that or contact RBI regarding this I would surely update you.

ok mate,i wanna to sell and buy only,i have to ask my customer to credit the amount on bitcoin instead of lr. in fact i dont know how to sell and buy itself , my customer wll credit the pay in USD wll the payment get credited in INR

i just want to know whether bitcoins are regulated by FEMA, 1999 or RBI regulations. If bitcoins purchased in a foreign nation and exhanging it to an authorised money exchanger in India without special or general permission from RBI amounts to an offence of money laundering? pls can u clarify my doubt..?

@Benson Samuel,
Good to see lots of happenings in india about Bit Coins, May I know why these guys are showing interest in purchasing Bit Coins. I had seen the charts of Bitcoins it looks like price collapse is likely to happen and happening! If you are a buyer then BitCoin Economy bothers me.

@Rajendran, Thank you for connecting. I have taken this price crash opportunity to get some more coins! While a price collapse may happen, It will never be a complete collapse. Bitcoin is the only method in the world that allows for such ease of use. It’s unique properties are what will keep it alive, not its prices. No, I am not a buyer in the economy, buy I do earn Bitcoins through programming, blogging, marketing and a bit of mining.

Nice blog. I’m actually stupid to have not gone into bitcoins, when I discovered it on 2009, I was 18 then. Now I’m 21 and I feel bad about this. But now, I guess it’s not too late. What are the business opportunities which are available through trading/ services/ products etc. Hope you reply. Thanks.

Hi benson I’m Arun from bangalore I gotta kno about u fro owner of buysellbitcoin.in he told me to contact u so please can u once mail me on arunkumarinbangalore@gmail.com pls I’m waiting for ur reply and I even tried contacting pinwheel but he is very remote can’t trace him

I’m Sunil here from Mysore…. i’m a small time techie at few cafes at b’lore, 2 yrs back shifted to Mysore… i’m really amused of bitcoins from past 1 year… but none of my family members encourages it… it would be nice if i could meet u in person… i see u stay in bangalore… if its ok with u could u please drop ur address or a location to meet at my mail: sunilshivling@yahoo.com

We are planning to hold a programme on ‘Bitcoin – it’s prospect’ and would like to invite you to address us on the theme in February 2014. We are a 112 years old Chamber of Commerce in Kolkata. Looking forward to your response.